HomeMy WebLinkAbout4.3 Fourth Amendment to the Belijah/Gardenworld Purchase Agreement
TO: Economic Development Authority
FROM: Matt Wolf, Economic Development Specialist
DATE: May 10, 2019
RE: Fourth Amendment to the Belijah/Gardenworld Purchase Agreement
Background
In 2015 the City of Cottage Grove worked with Belijah, Inc, doing business as
Gardenworld, to develop a 46,000 square foot facility and 45,400 square foot
greenhouse. During negotiation of the purchase agreement for the 9.08 acre parcel of
land that they developed as Gardenworld they also requested a right of first option on
281,700 square feet or 6.47 acres directly to the south of their facility for potential future
expansion.
Discussion
In order to accommodate the retention pond construction for the remainder of the 41.16
acres to south of Gardenworld that needs to be constructed as a result of the Renewal
by Andersen/Murphy Logistics project.; the purchase agreement that was signed in
2015 is being amended to change the purchase option for the land to the south of their
current facility from 281,700 square feet to 191,002 square feet (4.39 acres).
Figure 1. New right of first option area (Parcel 2) held by Belijah, Inc.
Recommendation
By Motion:
Approve the fourth amendment to the purchase agreement between the Cottage Grove
Economic Development Authority and Belijah LLC.
Attachments
Fourth Amendment Agreement
FOURTH AMENDMENT TO PURCHASE AGREEMENT
THIS FOURTH AMENDMENT TO PURCHASE AGREEMENT (this
“Agreement”) is entered into as of , 2019 (the “Effective Date”), by and
between the Cottage Grove Economic Development Authority, a public body corporate and politic
under the laws of Minnesota, (referred to hereinafter as “EDA”), and Belijah L.L.C (referred to
hereinafter as “Buyer”).
RECITALS
Recital No. 1. EDA and Gardenworld, Inc., predecessor in interest to Buyer, entered
into a purchase agreement on December 8, 2015 (“Purchase Agreement”) for the purchase and
sale of real property identified in the Purchase Agreement.
Recital No. 2. On or about February 9, 2016, the Purchase Agreement was assigned
from Gardenworld, Inc. to Buyer.
Recital No. 3. On or about March 29, 2016, the EDA granted an extension of the
contingency period for Section 5.1A(11) regarding financing to April 29, 2016.
Recital No. 4. On or about May 11, 2016, the EDA granted an extension of the
contingency period for Section 5.1A(11) regarding financing to May 11, 2016.
Recital No. 5. On or about May 18, 2016, the EDA granted an extension of the
closing date for Section 6 to occur on or before July 1, 2016.
Recital No. 6. The legal depiction of the Property described on Exhibit B of the
Purchase Agreement is removed in its entirety and replaced with Exhibit B attached hereto.
Recital No. 7. The legal description of the Right of First Offer Property described on
Exhibit D of the Purchase Agreement is removed in its entirety and replaced with Exhibit D
attached hereto.
NOW, THEREFORE, Buyer and EDA agree to the following:
1. That the legal depiction of the Property is attached hereto as Exhibit B.
2. The legal description of the Right of First Offer Property is attached hereto as
Exhibit D.
\[remainder of page intentionally blank\]
1
IN AGREEMENT, the parties hereto have hereunto set their hands as of the date hereinbefore
first written.
\[Signature page to Fourth Amendment to Purchase Agreement by EDA\]
COTTAGE GROVE ECONOMIC
DEVELOPMENT AUTHORITY
By ________________________________
Myron Bailey
Its President
By ________________________________
Jennifer Levitt
Its Executive Director
2
\[Signature page to Fourth Amendment to Purchase Agreement by Belijah L.L.C.\]
BELIJAH L.L.C
By:____________________________
Dave Van der Sman
Its Chief Financial Officer
3
EXHIBIT B
DEPICTION OF THE PROPERTY
B-1
EXHIBIT D
LEGAL DESCRIPTION OF RIGHT OF FIRST OFFER PROPERTY
Real property located in the County of Washington, State of Minnesota, legally described
as follows:
PARCEL 2
D-1